2-36 Comprehensive problem on unit costs, product costs. Regina Office Equipment manufactures and sells metal shelving. It began operations on January 1, 19_7. Costs incurred for 1927 (V stands for variable, stands for fixed) are as follows: Direct materials used costs $140,000 V Direct manufacturing labour costs 30,000 V Plant energy costs 5,000 V Indirect manufacturing labour costs 10,000 V Indirect manufacturing labour costs 16,000 F Other indirect manufacturing costs 8,000 V Other indirect manufacturing costs 24,000 F Marketing, distribution, and customer service costs 122,850 V Marketing, distribution, and customer service costs 40,000 F Administrative costs 50,000 F Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer service costs are variable with respect to units sold. Inventory data are as follows: Beginning Ending, January 1, 19.7 December 31, 19.7 Direct materials 0 kilograms 2.000 kilograms Work in process O units 0 units Finished goods O units ? units Production in 197 was 100,000 units. Two kilograms of direct materials are used to make one unit of finished product. Revenues in 19_7 were $436,800. The selling price per unit and the purchase price per kilogram of direct materials were stable throughout the year. The company's ending inventory of finished goods is carried at the av- erage unit manufacturing costs for 19-7. Finished goods inventory, at De- cember 31, 1927, was $20,970. ROUTRED 1. Direct materials inventory, total cost, December 31, 1927. 2. Finished goods inventory, total units, December 31, 1927. 3. Selling price per unit, 1927. 4. Operating income, 1927. Show your computations